Form 4: RSI CEO Sells Stock After Unit Conversion

Rush Street Interactive CEO Richard Todd Schwartz converted partnership units to Class A Common Stock and subsequently sold shares under a 10b5-1 plan.

Summary

• Richard Todd Schwartz, CEO and Director of Rush Street Interactive, Inc. (RSI), reported transactions on December 8 and 9, 2025.
• On December 8, 2025, Schwartz exchanged 172,781 Class A Common Stock Units of Rush Street Interactive, L.P. (RSI Units) for an equal number of Class A Common Stock of the Issuer.
• Concurrently, 172,781 shares of Class V Voting Stock held by Schwartz were canceled as part of the exchange.
• Following the conversion, Schwartz sold 134,148 shares of Class A Common Stock on December 8, 2025, at a weighted average price of $18.3715 per share.
• An additional 59,757 shares of Class A Common Stock were sold on December 9, 2025, at a weighted average price of $18.8207 per share.
• Both sales were executed pursuant to a Rule 10b5-1 trading plan.
• The filing also corrected an administrative error in a prior Form 4, which had understated the amount of Class A Common Stock beneficially owned by 95,703 shares.
• After these transactions, Schwartz directly owns 454,821 shares of Class A Common Stock and 5,373,331 shares of Class V Voting Stock.
• Indirectly, Schwartz owns 1,168,014 Class V Voting Stock and 1,168,014 Class A Common Units of Rush Street Interactive, L.P. through a Trust and an Irrevocable Trust.

Sentiment

Score: 5

Explanation: The filing reports routine insider transactions, including a conversion and sales under a 10b5-1 plan, which are generally neutral. The correction of an administrative error is a positive for data accuracy. The sales, while significant, are pre-planned and not necessarily indicative of negative sentiment.

Positives

• Correction of an administrative error in a prior filing improves the accuracy of reported holdings.

Negatives

• Significant insider sales by the CEO, even under a 10b5-1 plan, could be perceived negatively by some investors.

Future Outlook

NA

Industry Context

NA

Stakeholder Impact

• Shareholders: The sale of shares by the CEO could be interpreted differently by investors, potentially signaling a lack of confidence or simply portfolio diversification. The correction of an administrative error provides more accurate information.

Key Dates

Recommendation

The filing details a CEO's pre-planned stock sales following a unit conversion. While insider sales can sometimes be a negative signal, these were executed under a 10b5-1 plan, suggesting a pre-determined schedule rather than a reaction to new information. The correction of a prior administrative error is a positive for transparency. Without additional context on company performance or market conditions, these transactions alone do not warrant a change from a 'hold' position, as they are largely routine for executives managing their equity compensation.

Keywords

Rush Street Interactive, RSI, Richard Todd Schwartz, Insider Trading, Form 4, Stock Sale, 10b5-1 Plan, Class A Common Stock, Class V Voting Stock, Equity Conversion